© Reg". Nu KERBIL/zolz/45073

name Mm“; dated 5-9-2012 um. RNI

Govcmmenl of Kcmla Reg.No.KL/TV(N)1634/20l5-l7

2017 4a

c.9309 (mum?

KERALA GAZETTE

ammowomam

EXTRAORDINARY

muflaoaflammfl wouhuaflsgmgmrfiPUBLISHED BY AUTHORITY

2m; mad I:

(man-Wanna. mu. June 20176 _______

mmmmay” WW5nu mungmo 5

1248

Vol. V] 'l’hiruvanamhapuram.51hMW No.

Mondaywas acumen 29

29th Jyaishla I939

GOVERNMENT OF KERALA

Luw (Legislation-A) Depnrlmem

NOTIFICATION

No,55l6/beg. AZ/2017/Law. I91}: June 2017

Dam]. Thirumumu/mpumm, 51h Milhunum. “91

29th balm", [5139‘

The following Acl nfthe Kcraln Slate Legislature is hereby publishedfor general inl'onnalion. The Bill as passed by the Legislative Assembly

.receivcd the assent of the Govcmor on the 16m day of June. 2017.

By order of the Govemor.

B, (1 HARINDRANAIIL

Law Sec-runny3312125r201 7/543

2

ACT 11 OF 2017

THE KERALA FINANCE ACT,2l)l7An Ac! In give effect to certain financial prapoxulx nf the

Government! (If Kemlufiw llu' Financial Year 20] 7-30I8t

Pt'cunzhlu.7thI-:RI-.As. it is expedient to give effect to certain financial

proposals of the Govemment of Kcrala for the Financial Year 20l7-2018:

Bt-z it enacted in the Sixty-eighth Year of the Republic of India as

follows:—

1. Shaw til/c and cantmcncunth——(l) This Act may be called the

Kemla Finance Act. 20l7,

(2) Save as othenvise provided in this Act. it shall be deemed

to have come into force on the lst day of April. 2017,

2. Amendment qucI l7 ({1'1959.Aln the Kerala Stamp Act, 1959

(17 of 1959),;

(l) in section 2.

(a) in clause (e). for the words "an adhesive or impressed

stamp". the words and symbols “an adhesive,

impressed or e-slamp“ shall be substituted:

(b) after clause (6). the following clause shall be inserted‘

namely?

"(ea) “e-stamp" means an electronically generated

impression issued by the Government of Kerala to

denote the payment of stamp duty;";

(6) alter clause (p), the following clause shall be inserted.

namelyti

"(pa)“Registcring Officer" means the officer appointed

under section 6 of the Registralion Act, 1908 (Central

Act XVI of 1908);“;

(d) in clause (qq).*

(i) for the words “mark, seal or endorsement“. the

words and symbols “mark. seals endorsement. impression or e—stamping"

shall be substituted;

(ii) for the words “adhesive or impressed stamp" the

words and symbols “adhesive. impressed or e-stamp“ shall be substituted:

(2) in section 10. in clause (b) of sub-section (2). afier the words

“impressed stamps", the words and symbol “or e-stamps" shall he insened;

(3) after section 10A, the following section shall be inserted,

namely:—

"lOB, Appointment ofCenlru/ Record Keeping Agency.~

The Government may. by notification in the Ofiicial Gazette.

appoint the Department of Treasuries as Central Record

Keeping Agency which shall have such duties and functions

as may be prescribed, regarding issue of e-stamps.";

(4) after section 12, the following section shall be inserted.

namelyii v

“lZAt DcftlL'Umt’Hl Off-.flamp.‘(l) Any e-stamp in an

instrument shall be defaced through online verification system

by the Registering Officer or any other officer authorised by

the Government. in such manner as may be prescribed, so that

the same cannot be used again.

(2) Any instntment bearing an e—stamp which has not

been defaced. so far as such stamp is concerned be deemed

to be unstamped.“;

(5) in section 13:7

(a) in the marginal heading, after the words “impressed

stamps", the words and symbol “or e-stamps" shall be inserted;

(b) in the existing provision‘ after the words “impressedstamp". the words and symbol “or e-stamp" shall be inserted:

(6) in section 47. after the words "impressed stamps" the words

and symbol "or e»stamps“ shall be insened:

(7) after clause (a) of sub-section (2) of section 69. the followingclause shall ‘be inserted. namely:~

“(z\a) the manner of payment of stamp duty and refund

thereof by e-payment“.

3. Amendment afAct [5 n/ [963.7 In the Kerala General Sales

Tax Act. 1963 (15 of 1963). in section 238.7

(a) in sub-section (3). for the words and figures“28th February. 2017“, the words and figures "3lst December. 2017"

shall be substituted;

(b) in sub-section (4), for the words and figures“28th February. 2017", the words and figures "Slst December. 2017" shall

be substituted:‘

(c) after sub-section (8). the following sub-section shall be

inserted nan telyzi

“(9) If the dealer had filed option in 2016-17 but failed to

remit the entire amount as per this section. the amount paid under the

earlier option shall be treated as amount paid under the new option".

4‘ Amendment quct .i.’ of I976 iln the Kerala Tax on

Luxuries Act, 1976 (32 of 1976). for section 103, the following section

shall be substituted. namely:7

“1013. Reduction of urrcm'x in certain t'u.re.\'.7( 1)

Notwithstanding anything contained in this Act or rules made thereunder

or in any judgment. decree or order of any court. tribunal or appellateauthority. an assessee who is in arrears of tax or any other amount due

under this Act reialing to the period up to and including 315! March. 2011.

may opt for settling the arrears on payment of the principal amount of tax

in arrears and thirty per cent of penalty amount. by availing a completereduction of the interest on the tax amount and interest on the penaltyamount,

a

5

(2) Notwithstanding anything contained in the Kerala Revenue

Recovery Act. 1968 (15 of 1968) reduction of arrears under sub-section

(1) shall be applicable to those cases in which revenue recovery

proceedings have been initialed and tlte assessing authorities shall have

the power to collect such amounts on settlement under sub-section (1) and

where the amount is settled under sub-section (1). the assessing authorities

shall withdraw the revenue recovery proceedings against such assessees

which will then be binding on the revenue authorities and such assessees

shall not be liable for payment of any collection charges.

(3) The assessee shall withdraw all the cases pending before

any appellate or revisional authority. tribunal or courts for opting for

settling the arrears under this section.

(4) All arrears including tax and penalties pertaining to a year

shall be settled together under this section.

(5) An assessee who intends to opt for payment of arrears

under subsection (1) shall submit an application to the assessing authorityon or before 30th September. 2017.

(6) The arrears for the purpose of settlement under this

section shall be calculated as on the date of submission of application.

(7_) On receipt of an application under sub-section (5), the

assessing authority shall determine the amount of tax and other amounts

due from the assessee under sub-section (1) and shall intimate the same to

the assessee, and thereupon the assessee shall remit the amount in equal

monthly instalments on or before Slst December. 2017:

Provided that an assessee who opts to settle his arrears under

subsection (1) has remitted any amount relating to the arrears for

obtaining a stay voluntarily or by way of an order or decree or judgment

passed by any court or tribunal or appellate authority and if the case is

pending before such authority. the amount so paid shall he treated as that

paid under this option.

(8) There shall not be any refund subsequently for the amount

settled under this scheme. under any circumstances.

b

5. Amendment quu [5 uf [991.711] the Kerala Agricultural

Income Tax Act. 1991 (15 of 1991) for section 37C, the following section

shall be substituted. namely:~

“37C. Reduction Q/arrenm in vermin cast/514]) Notwithstanding

anything contained in this Act or rules made thereunder or in any judgment.

decree or order of any court. tribunal or appellate authority. an assessee

who is in arrears of tax or any other amount due under this Act relatingto the period up to and including 3151 March, 2011, may opt for settling the

arrears on payment of the principal amount of tax in arrears and thirty

per cent of the penalty amount by availing a complete reduction of the

interest on the tax amount and on the penalty amount;

(2) Notwithstanding anything contained in the Kemla Revenue

Recovery Act. 1968 (15 of 1968), reduction of arrears under sub-section

(1) shall be applicable to those cases in which revenue recovery

proceedings have been initiated and the assessing authorities shall have

the power to collect such amounts on settlement under sub-section (1) and

where the amount is settled under sub-section (1). the assessing authorities

shall withdraw the revenue recovery proceedings against such assessees

which will then be binding on the revenue authorities and such assessees

shall not be liable for payment ot‘ any collection charges.

(3) The assessee shall withdraw all the cases pending before

any appellate or revisional authority. tribunal or courts for opting under this

section.

(4) All arrears including tax and penalties pertaining to a year

shall be settled together under this section.

(5) An assessee who intends to opt for payment of arrears

under sub-section ( 1) shall submit an application to the assessing authority

on or before 30th September. 2017.

(6) The arrears for the purpose of settlement under this

section shall be calculated as on the date of submission of the application.

7

(7) On receipt of an application under sub-section (5). the

assessing authority shall determine the amount of tax and other amounts

due from the assessee under sub-section (1) and shall intimate the same

to the assessee, and thereupon the assessee shall remit the amount in

equal monthly instalments on or before 3lst December. 2017:

Provided that an assessee who opts to settle his arrears under sub-

section (1) has remitted any amount relating to the arrears for obtaining a

stay voluntarily or by way of an order or decree or judgment passed by

any court or tribunal or appellate authority and if the case is pending

before such authority. the amount so paid shall be treated as that paid

under this option.

(8) There shall not be any refund subsequently for the amount

settled under this scheme. under any circumstances".

6. Amendment rgf'AL-I 30 (5/‘20047ln the Kerala Value Added Tax

Act. 2003 (30 of 2004):?

(l) in section 6.7

(a) in sub-section (1). atter the nineteenth proviso, the following

provisos shall be inserted. namely:7

“Provided also that the sale of packing materials by a registereddealer to an exporter for the purpose of use in the packing of exported

goods shall be exempted from the tax for the period up to

315! March. 20H). subject to the condition that the sale has been

supported by ‘H‘ Forms issued under the Central Sales Tax Act. [956

(Central Act 74 of 1956). by such exporting dealer and tax. if any. paidshall not be refunded:

Provided also that the rate of tax on works contract of supply and

installation of solar energy devices. equipments and plants shall be one

per cent from lst April, 2013 and tax. if any. paid at higher rate shall not

be refunded:

Provided also that the goods specified in item (I) of serial number [34

of List A of the Third Schedule shall be exempted from tax for the

period from 20th December. 2014 to 31st March. 2015:

8

vaided also that the rate oftax of Mobile Phone Charger sold alongwith Mobile Phone in a sealed pack shall be at the rate applicable to the

goods specified in the Third Schedule from is! April 2005:

Provided also that the rate of tax on ‘bakery sltortening‘ included

under the Chapter 15 the Schedule to the Customs Tariff Act. 1975

(Central Act 51 of 1975) with the HSN code 1517.90, shall be at the rate

applicable to the goods in the Third Schedule. from 151 April. 2005 to 22nd

Febmary. 2017.

Notwithstanding anything conlained in the aforementioned proviso. tax

if any paid. shall not be refunded“:

(b) in sub-section (2). to clause (a) the following proviso shall be

inserted. namely}?

“Provtded that notwithstanding anything contained in clause (1‘! of

section 8. a dealer paying compounded tax for the goods mentioned in

that clause. shall not be liable to pay tax under this sub-section on such

goods with effect from 1st April. 2013.":

(2) in section 24. in sub-section (1).—

(i) in clause to). for the words “three years“ the words “four

years" shall be substituted:‘

(ii) for the fourth proviso. the following proviso shall be

substituted, nantely:~—

"Provided also that the period for rejection of retum and completionof assessments including those subjected to extension under section

2513 which expires on Slst March. 2017. shall be extended up to

3lst March. 2018.";

(3) in section 25. in sub—section (1).!

(i) for the words “five years". the words “six years" shall

be substituted:

(ii) for the third provtso, the following proviso shall be

substituted. namely:—-

“Provided also that the period for proceeding to determine any

assessment including those subjected to extension under section 251! which

expires on Slst March, 2017, shall be extended up to 3151 March. 2018.";

9

(4) for section 25E. the followmg section shall be substituted,

namely:—

“ZSE. Special provisionfilr assessment and payment afmxfor

prtwumptivc (Malena—(l) Notwithstanding anything contained in this Act

or rules made thereunder or in any judgment. decree or order of any

court, tribunal or appellate or revisional authority or any assessment order

or penalty order issued under this Act, the dealers who have opted to pay

tax under sub-section (5) of section 6 and with regard to whom

unaccounted purchases have been detected by the assessing authority for

the period up to Jlst March. 2016. may opt to settle their cases by payingtax at,—

(i) half per cent on the turnover of taxable goods. if the total

turnover dotemiined is. within the total turnover limit

specified under sub-section (5) of section 6;

(ii) one per cent on the tumover of taxable goods, for the total

tumover determined in excess of the total turnover limit

specified under sub-section (5) of section 6 and up to

rupees one crore. in addition to the tax due under clause

(i) above;

(iii) two per cent on the iumover of taxable goods, for the total

turnover determined above rupees one crore, in addition to

the tax due under clauses (i) and (ii) above.

and on payment of such tax. all penalties and interest

including penalty under sub-section (7) of section 22, shall

stand waived.

Exp/analions—Notwithstanding anything contained in clause (11) of

section 2 of the Act, for the purpose of this section, 'total turnover

dctenuined‘ shall be the total turnover obtained by adding unaccounted

purchases detected or declared with five per cent gross profit to the total

turnover declared as per the returns filed.

(2) For settling the cases under sub-section (I). the dealer shall file

option before the assessing authority on or before 30th September. 2017,

along with the evidence regarding withdrawal of cases, if any, pendingbefore any court, tribunal or appellate or revisional authority.

mas/2017543

lO

(3) Such option and settlement shall cover all the financial years in

which unaccounted purchases have been detected’

(4) 'lhe assessing authority shall intimate the dealer, the amount to

be paid under sub—section (1), within fifteen days from the date of receiptof the option

(5) Thiny per cent of the amount due under this scheme shall he

paid within fifteen days from the date of receipt of the intimation under

sub-section (4) and the balance amount shall he paid on or before llst

December, 20|7 in equal monthly instalments.

(6) Without prejudice to the provisions of this section, the

Commissioner may issue such instructions to the assessing authorities and

the dealers for the effective implementation of the scheme.

(7) Any dealer who opts for this scheme shall obtain Tax payers

Identification Number (TIN) under this Act with effect from lst April,

2016

(8) No funhcr action under any of the provisions of this Act shall

be initiated by the assessing authority With regard to the unaccounted

purchases settled by the dealer under this section or other irregularities in

accounts which resulted from such unaccounted purchases, and no appealor revision shall lie against the amount so settled under this section.

(9) Dealers who have opted to pay tax under sub-section (5) of

section 6 and with regard to whom unaccounted purchases have not been

detected by the assessing authority for the period up to 3lst March, 2016.

may also Voluntarily declare such unaccounted purchases, and opt for the

scheme mentioned in sub-section (1), and on doing so, no further action

under this Act shall be initiated against such dealers with regard to the

same.

(l0) Dealers who opted to settle their c 'cs under this section in

20l6-l7. but had failed to make payments may also opt to settle their

cases under this section, and the amounts, if any, oaid earlier shall be

adjusted towards the amount to be paid under this section, provided that

no refunds shall be allowed.

ll

(11) There shall not be any refund subsequently for the amount

settled under this Scheme. under any circumstance";

(5) after section 25E, the following section shall be inserted.

namely:

"25F. Spcctu/ pruvm’unxjar LI.\'.}'L’.\SIIIL’HI (Iml [m‘rmcnl u] tuxfm‘curtain imrk wu/nwlmzr.—Notwiihsranding anything contained in this

Act or rules made thereunder or in any judgment. decree or order of any

coun. tribunal or appellate authority. works contractors who have opted for

and paid compounded tax under clause (a) of section 8 of the Act for the

years up to 2014-15 in respect of works relating to installation of kitchen

cabinet. aluminium fabrication and air conditioning plants in which the

transfer of materials is in the limit of goods and if all the purchases for

executing such contracts are from within the State may pay an additional

tax at two per cent on the whole contract amount and on payment at

such tax. no turther proceedings under this Act. including any assessment

or penalties shall lie against such contractors. .

(6) after section 31. the t'ollowrng section shall be insened.

namely:~

“31A Rut/“CHI!!! {gl'urreurx in certain L'uxclli(l) Notwithstanding

anything contained in this Act or ru'-2s made thereunder or in any judgment.decree or order of any court. tribunal or appellate authority. any assessee

who is in arrears of tax or any other amount due under this Act or under

the Central Sales Tax Act. I956 (Central Act 74 of 1956) relating to the

period up to and including 3151 March. 20]], may opt for settling the

arrears on payment of the principal amount of the tax in arrears and thirty

per cent of the penalty amount by availing a complete reduction of the

interest on the tax amount and an the penalty amount.

(2) Notwithstanding anything contained in the Kerula Revenue

Recovery Act. 1968 (15 of 1968) reduction of arrears under sub-section

(1) shall be applicable to those cases in which revenue recovery

proceedings have been initiated and the assessing authorities shall have

the power to collect such amounts on settlement under sub-section (1) and

where the amount is settled under sub-section (1) the assessing authorities

shall withdraw the revenue recovery proceedings against such assessees

which will then be binding on the revenue authorities and such assessees

shall not be liable for payment of any collection charges,

sinus/ta

12

(3) The assessee shall withdraw all the cases pending before any

appellate or revisional authority, tribunal or courts for opting under this

section.

(4) All arrears including tax and penalties pertaining to a year shall

be settled together under this section.

(5) An assessee who intends to opt for payment of arrears under

sub-section (1) shall submit an application to the assessing authority on or

before 30m September. 2017,

to) The arrears for the purpose of settlement under this section

shall be calculated as on the date of submission of application.

(7) On receipt of an application under sub-section (5). the assessing

authority shall detennine the amount of tax and other amounts due from

the dealer under sub-section (1) and shall intimate the satire to the dealer.

and thereupon the dealer shall remit the amount in equal monthly

instalments on or before Slst December, 2017:

Provided that an assessee who opts to settle his arrears under

sub-section (1) has remitted any amount relating to the arrears for

obtaining a stay voluntarily or by way (if an order or decree or judgment

passed by any court or tribunal or appellate authority and, if the case is

pending before such authority, the amount so paid shall be treated as that

paid under this option.

(8) There shall not be any refund subsequently for the amount

seltled under this scheme. under any circumstances":

(7) in section 55, in subsection (I). »

(i) for the words. brackets and figures “other than those

under seetiun 16, section 19. Suh»sc€llun$ (S) and (9;

of section 44. section 49, section 6/, section 68.

section 6‘) and section 70" the words. brackets and

figures “other than those under sub-section (3’),

sub-section (8) or suh-sccrion (9) of section to and

subsection (8) ot‘ section 19" shall be substituted;

’_____—